Money Saving Auto Insurance Tips

Everyone likes to save money and your automobile insurance is a great place to find savings. You’re most likely required by state law to carry auto insurance on any car you own and auto insurance costs can vary widely.

Here are eight tips to help you start saving money with your automobile insurance.

1. Compare auto insurance quotes – this advice might sound simple, but it is the best way to find the best possible auto insurance rate. Get at least auto insurance quotes to compare and make certain you are comparing similar policies.

2. One way to buy less expensive auto insurance is to ask for a high deductible. You will be out a much larger out-of-pocket expense in the event your auto insurance policy is used to cover a claim, but your premium will be substantially lower. If you take your deductible up to $1000, you can expect savings of 40 percent, or more.

3. If your car is older consider reducing the coverage of your automobile insurance. Two types of coverage to think about are collision and comprehensive auto insurance. A good rule of thumb is to drop unnecessary coverage for any car worth less than 10 times the cost of coverage. In the event you make a claim for an older car, the amount you receive might be less than your auto insurance premiums.

4. Your car has a major impact on the cost of your auto insurance. For example, a sports car is going to be much more expensive to insure than a family sedan. When you are buying a car, take the automobile insurance costs into account. Safety features like air bags, car alarms and anti-lock brakes can all help reduce the cost of auto insurance. Other factors that affect your auto insurance premiums include the sticker price of the car, its safety rating, how much it costs to repair and how likely the car is to be stolen.

5. This tip really shows how shopping around and comparing auto insurance can pay off – if you don’t drive very much you might want to find an automobile insurance company that offers a low-mileage discount.

6. Another way to get a lower auto insurance premium is to buy your auto insurance from the same company where you carry other types of insurance, such as home insurance.

7. Save money by being a good citizen. Really. Keeping a good credit rating and a good driving record can reduce your auto insurance costs.

8. Find out if you are able to buy auto insurance with a group plan at your work or through a group like a professional association. Group plans can offer very large discounts on most types of insurance, including auto insurance.